The good news about business aircraft financing today is that the money is back. One of the first consequences of the 2008 Wall Street meltdown was that capital disappeared faster than free beer. Many aircraft lenders still proclaimed that they were "ready to do deals," but often they lacked the financial horsepower to deliver on that promise.

Not everyone can register an aircraft in the U.S. For starters, in most cases you have to be a U.S. citizen, as defined by federal statutes and FAA regulations. Under applicable statutes and FAA rules, a corporation isn't considered a U.S. citizen unless its president, two-thirds of its board of directors, two-thirds of its "managing officers" and three-quarters of its owners are U.S.

Business jet finance probably hit bottom in early 2009. Loans have become much more available since then, but we've yet to return to the halcyon days of 2007, when you could readily arrange 100 percent financing for aircraft at purchase prices that today seem grossly inflated. As Bank of America's Michael Amalfitano pointed out, "The days of aggressive deals at thin pricing are over."

After three straight years of historically low premiums and greatly expanded coverage offerings, the struggle among aviation insurance companies to gain or hold market share has begun taking its toll. Last year the industry experienced one of its worst for aviation claims since 2001, and 2010 continues the trend.

When searching for a specific aircraft tail number, it's easy to conclude that all the good ones are taken. The folks who operate the FAA registry in Oklahoma City, however, think they've found a way to make many of these "unavailable" registration numbers magically accessible to the rest of us.

If you own an aircraft and lease it out, can you be liable for damages caused when the lessee is operating it? The answer reminds me of a joke my securities law professor, Louis Loss, used to tell about a client wanting to hire a one-handed lawyer so the lawyer couldn't say: "Well, on the one hand...but on the other hand."

You may have heard that is almost impossible to secure business jet financing these days, but to paraphrase Mark Twain, rumors of its demise are greatly exaggerated. Though the feeding frenzy among aircraft lenders is over, you can still find financing if you know where to look.

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““[Bill Gates] has been historically one of my best supporters…One of my favorite e-mails he ever sent me…I proposed this crazy project. And he sent back this two-line response: ‘This has got to be the craziest thing you’ve ever suggested. Please proceed.’”
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